PDynamic. Positioning Committee. Marine Technology Society. Dynamic Positioning Conference September 18-19, 2001

Transcription

1 PDynamic Positioning Committee Marine Technology Society Dynamic Positioning Conference September 18-19, 2001 Deepwater Opportunities and Challenges D.E. Jacobsen Manager, Drilling & Completions Shell Exploration and Production Co. Keynote Speaker

2 Global Deepwater Discoveries oil - 30 billion bbl gas - 14 billion boe

3 Deepwater 2000 Daily Operated Production Fields in WD >500 m Petrobras Shell bp ChevronTexaco Amerada Hess Kerr-McGee ExxonMobil Others kboe/day

4 $/bbl Uncertain Future Brent crude energy efficiency cost cutting? fuel competition 5 0 producer restraint demand growth

5 Key Deepwater Challenges Reservoir Identification/Characterization Technology Development & Application Value Creation/Cost Leadership Access to Experienced Staff Societal Expectations

6 Key Deepwater Challenges Reservoir Identification/Characterization Technology Development & Application Value Creation/Cost Leadership Access to Experienced Staff Societal Expectations

7 Seismic Imaging Prospect identification Positioning of development wells Time lapse seismic to discern changes in fluid properties as the field is produced

8 Real Time 3D in Caves Viewing sub-surface surface in virtual reality centres Accelerated planning and knowledge sharing

9 Key Deepwater Challenges Reservoir Identification/Characterization Technology Development & Application Value Creation/Cost Leadership Access to Experienced Staff Societal Expectations

10 Technology Impact on Cost Reduction Source: Cambridge Energy Research Associates

11 Technology Impact on Cost Reduction Notes from previous slide In the meantime, as we can see from this chart developed by the Cambridge Energy Research Associates, technology has had a major impact on industry performance. And I am convinced that technology will continue to be a significant differenciator in the future of the industry. The difference is and will continue to be technology.

12 Role of Technology in Deepwater Breakthroughs and ever-increasing water depth: 50 s First single point mooring system (Malaysia) 60 s First subsea completion (GoM) 70 s First dynamically positioned drill ship First J-lay installed flow line/flexible pipes First FPSO (Spain) Deepest fixed steel platform (Bullwinkle) 90 s Successively deeper and cheaper 5 Tension Leg Platforms in GoM Deepest subsea field development

13 TSF Deepwater Nautilus

14 Expandable Tubulars Standard Clad / Re-Entry Slender Mono- Diameter Current Future Courtesy: Enventure Global Technologies

15 Conventional Circulation Subsea Pump Circulation Drilling Fluid Processing Drilling Fluid Processing Marine Riser Subsea BOP Subsea Pump & Return Conduit Drilling Fluid Processing Marine Riser Seawater Filled

16 Smart Wells Chem Inj Valve SCSSV Dual P/T Gauge Actuated Sliding Sleeve Dual P/T Gauge Actuated Sliding Sleeve Shroud Upper Sand VALUE: Avoid high cost recompletions in multi-zone wells Commingle zones w/ different pressures & drive mechanisms Reduce total well count in a project ISSUES: Mechanical complexity could reduce well reliability & increase high cost intervention Lack of a reliable multi-lateral HP junction Lack of a reliable multi-phase meter Complexity of GOM Gravel Packs SEPCo PLANS: Brutus - 1 well Nakika - 5 wells Lower Sand

17 Breakthrough Surface Systems Composites for outer skin Alternative hull shapes Robotics for Internal Inspection Risers as mooring Dynamic Positioning Assist Slack Risers Composite Risers

18 Breakthrough Surface Systems Notes for previous slide Breakthrough surface systems - focusing on enabling marginal fields by lower life cycle costs and by increasing the crude sales price by crude enhancing technology. Key problems with marginal fields are that they are sensitive to CAPEX and frequently have poor quality crude properties. The poor quality can affect the sales price by up to $2/bbl. This initiative will focus on lowering the initial cost of surface systems by working on breakthrough technologies and on improving the sales price of the crude production through the use of crude enhancing technologies. Surface technologies such as using different hull shapes to lower the environmental forces and using slack vertical risers without tensioners may dramatically lower the cost of surface structures. The use of new composite materials may also add further cost reductions.

19 Novel Deepwater Systems DICAS Mooring System Synthetic Mooring Lines Crude Enhancement Technology PinP Electrically Heated Flowlines Steel Lazy Wave Risers Surface BOP Drilling and Completions Wellhead Spar DVA Semi Near-Surface Transfer Line

20 Key Deepwater Challenges Reservoir Identification/Characterization Technology Development & Application Value Creation/Cost Leadership Access to Experienced Staff Societal Expectations

21 SEPCo DW Drilling & Completion Performance Highlights Best-in-class HSE performance Drilling the Limit TM savings $65MM in % improvement in TLP drilling 30% time/15% cost improvement in TLP completions Leading DW technology implementation (e.g. expandable casing) Avg. days / 1000' BLM DW Exploration Wells (Miocene/Subsalt ) 7.71 Industry 4.1 Shell

22 SEPCo DW Drilling & Completion Performance Notes from previous slide HSE performance GOM TRIR = MMBE SS accelerated production from TLP completion performance improvement From increased penetration rate on chart, with average well depth of 18,300 BML and $350k/day rig spread rate, this difference equals $23MM!

23 Equipment Standardization Mensa Tree System Height = 35 Weight = 240,000 lb. Standard Tree System Height = 19 Weight = 144,000 lb.

24 Tree System Costs 6 Learning Curve $M 4 Target Cost 2 0 Mensa Trees 1-5 Trees 6-10 Tree 11 Frontier Technology Developing Standard Applying the Standard with Discipline

25 GOM Subsea Tree Installation Time Days per 3,000 ft Water Depth Average 7.8 Days Average 3.6 Days 0.0 Tahoe Tahoe Popeye Popeye Mensa Mensa Macaroni Angus Angus Europa

26 Development Projects Cost Index 100% Auger 80% Schiehallion 60% 40% Mars Ram-Powell Ursa Bonga 20% Brutus Forecast Jan-89 Jan-91 Jan-93 Jan-95 Jan-97 Jan-99 Jan-01 Jan-03 Jan-05

27 Subsea Cluster Developments Proven Economically Viable Option Remote, Deep Areas Smaller Accumulations Improved Reliability Experience Standardization Kepler Export Pipelines Ariel Herschel Coulomb Fourier E Anstey

28 Key Deepwater Challenges Reservoir Identification/Characterization Technology Development & Application Value Creation/Cost Leadership Access to Experienced Staff Societal Expectations

29 The Resource Challenge O&G Industry Technical Professional Workforce 25 Distribution % < >64

30 Global Deepwater Technology and Expertise Flow

31 Global Deepwater Discoveries Notes for previous slide Approx. 35 BBOE have been found to date with breakout mix at approximately 2/3 oil - 1/3 gas Region Reserves found by Region: BBOE % of BBOE Discovered Globally South America ~10 28% Africa ~9 25% North America ~6 17% Australia ~4 12% Europe ~4 11% Asia %

32 Global Communication Viewing sub-surface surface in virtual reality centres Accelerated planning and knowledge sharing

33 Key Deepwater Challenges Reservoir Identification/Characterization Technology Development & Application Value Creation/Cost Leadership Access to Experienced Staff Societal Expectations

34 Expectations of Society

35 Expectations of Society With all these achievements in technology and value creation, we must not forget that we are operating in potentially exposed environments, working with highly flammable products. Until our technology allows us to remove manned facilities from the offshore, this exposure will increase as we move to deeper and more remote waters. Our industry must maintain its management of Health, Safety and the Environment. Our own responsibilities and the expectations of society will not let us put our people at risk. A series of major offshore incidents in the late 1960s and the 1970s highlighted these risks, but it was not until the Piper Alpha disaster in 1988 that the industry woke up to the fact that something could and should be done. Today, HSE is approached systemically - HSE management is the watchword, and Safety cases are mandatory in most operations. Looking after the safety of an offshore installation requires continuous monitoring and improvement. Our industry needs to approach this together - there cannot be any element of secrecy or competitiveness about HSE management. We believe that in the long term all accidents can be prevented, but it will require the efforts of everyone to be a part of the solution. Finally, business conditions will become more challenging as investors see other, new opportunities for their investments. We all need to satisfy our various shareholders and stakeholders. Cost reduction and technological improvements, along with ensuring that development is sustainable are essential to achieve this objective.

36 HSE Commitment No harm to employees and contractors Protection of the environment Efficient use of materials and energy resources Public reporting on HSE performance Sustainable development strategies HSE Management System

37 HSE Management System Leadership and Commitment Policy and Strategic Objectives Organization, Responsibilities, Resources, Standards, Documents Management System Hazard and Effects Management Planning and Procedures Corrective Action Implementation Audit Management Review Monitoring Corrective action and improvement Corrective action and improvement

38 Key Deepwater Challenges Reservoir Identification/Characterization Technology Development & Application Value Creation/Cost Leadership Access to Experienced Staff Societal Expectations

39 DP Challenges/Opportunities Equipment and hardware Procedures and commissioning

40 DP Challenges/Opportunities Equipment/hardware More reliable/robust DGPS systems Integration between different manufacturers System response to equipment failures More sophisticated/reliable acoustic systems Handle variable pitch thrusters Improve signal time transfer Eliminate interference problems in close proximity operations

41 DP Challenges/Opportunities Procedures/commissioning Standardized failure reporting and follow-up Standardized procedures and training More rigorous system integration testing and commissioning Recommended guidelines on drills, watch standards, roles & responsibilities Supply vessel standards and guidance for interactions with other vessels

42 Thank You!